Tribunal�s decision in Phase One of the
Newfoundland and Labrador/Nova Scotia Offshore Boundary Dispute

It gives me great pleasure to update my honourable colleagues regarding the status of the Newfoundland and Labrador/Nova Scotia offshore boundary dispute arbitration.

Earlier today, the tribunal released its decision with respect to Phase One of the arbitration. In an unanimous decision, the tribunal confirmed the position of Newfoundland and Labrador that the line dividing the respective offshore areas of Newfoundland and Labrador and Nova Scotia has not been resolved by agreement.

The tribunal�s decision represents an important victory for Newfoundland and Labrador. We are one step away from the establishment of a line and the resolution of a dispute that has prevented exploration from proceeding in highly prospective areas between Newfoundland and Labrador and Nova Scotia.

Much work, however, remains. In Phase Two of the arbitration, the tribunal will determine a line to separate the offshore areas of Newfoundland and Labrador and Nova Scotia. Our energies, therefore, will be focused on effectively presenting Newfoundland and Labrador�s arguments to the tribunal.

Premier John Hamm and I appreciate the importance of resolving this dispute as quickly as possible. To that end I have spoken to Premier Hamm this morning and we have agreed to meet within the next couple of weeks in St. John�s, if possible, to discuss possible areas of cooperation which may be in our mutual interest.

I would like to recognize the efforts of the Minister of Mines and Energy, the Honourable Lloyd Matthews. I would also like to thank Ministers Parsons and Lush and the Department of Justice and the Intergovernmental Affairs Secretariat who were key to the preparation and presentation of this case. As a former Minister of Mines and Energy, I appreciate the complexity of the issues involved in this dispute. I thank you for your hard work and commitment to this file.

I trust that I can speak for this House and the people of Newfoundland and Labrador in extending thanks to our legal and technical team. In particular, I would like to recognize our lead legal counsel, Professor Donald McRae, and Alan Willis, Brian Crane and Ron G�linas. These gentlemen are to be commended for effectively presenting our case to the tribunal during the oral hearing. I would also like to pay particular praise to Deborah Paquette of our Department of Justice who served as the province�s deputy agent.

As was the case with Phase One, Newfoundland and Labrador will not argue its case in Phase Two through the media. We will remain focused on the arbitration and presenting our case to the tribunal. Our written arguments, however, will again be made available to the public and the hearings will be open.

The resolution of this long-standing dispute will be positive for Newfoundland and Labrador and Nova Scotia. A resolution will see the opening up of new areas of the offshore to exploration and the realization of opportunities for Newfoundlanders and Labradorians and Nova Scotians.

In my discussion with Premier Hamm today we also discussed a potential joint campaign to address the well known inequities in the equalization formula with respect to offshore petroleum royalties.

2001 05 22                                      4:30 p.m.